The Dark Side of Delivery: How Apps Like Grubhub and Uber Eats Are Hurting Chicago's Local Restaurants and Drivers

The rise of food delivery apps has revolutionized the way we order food, but a closer look at the data reveals a disturbing trend: these apps are eating away at the profits of local restaurants and leaving drivers with meager pay. According to a report by the Chicago Independent Restaurant Coalition, the average local restaurant in Chicago makes just 28 cents per dollar sold through third-party delivery apps like Grubhub and Uber Eats. Meanwhile, drivers for these apps are often forced to navigate complex systems and long hours with little financial reward. "It's a ticking time bomb," says Steve Gliatta, owner of the popular Chicago restaurant, Glimmer. "If we don't do something to change the way these apps operate, it's going to be a disaster for small businesses like mine."

The Numbers Don't Add Up

The numbers are stark. According to a study by the University of Chicago, the average delivery fee charged by apps like Grubhub and Uber Eats is around 20% of the total order price. This may not seem like a lot, but it adds up quickly. For example, if a customer orders a $20 meal through Grubhub, the restaurant will be charged a $4 delivery fee. But here's the thing: the app doesn't pay the restaurant the full $4. Instead, it deducts a commission fee, typically around 15-20% of the total order price. So, in this example, the restaurant would be left with just $1.60. "It's a shell game," says Gliatta. "They're taking a cut from us, but we're not getting the full amount back from the customer."

The Driver's Dilemma

For drivers who work for these apps, the situation is equally dire. Many drivers report earning as little as $2-3 per hour, after accounting for gas, tolls, and other expenses. According to a report by the Chicago-based group, FORCE (Food and Ride Workers Empowerment), drivers are often forced to navigate complex systems and long hours to earn a decent wage. "I've been driving for Uber Eats for over a year now, and I still can't make ends meet," says Chicago driver, Maria Hernandez. "I have to work over 20 hours a week just to earn enough to pay my bills."

The Impact on Local Businesses

The impact of these apps on local businesses is clear. According to a report by the National Restaurant Association, the average local restaurant in the United States loses around 3.5% of sales to delivery apps. In Chicago, the number is even higher, with some restaurants reporting losses of up to 10%. "It's not just the money that's the problem," says Gliatta. "It's the way these apps are treating our customers. They're taking the customer out of the equation, and making it all about the convenience of the app. We're losing our connection with our customers, and it's devastating for small businesses like mine."

The Solution?

So, what's the solution? Some experts argue that restaurants need to take control of their own destiny and abandon third-party delivery apps altogether. Others suggest that apps like Grubhub and Uber Eats need to be more transparent about their fees and commission rates. "We need to be more mindful of the way we're treating our customers and our drivers," says Hernandez. "We need to make sure that everyone involved in the process is getting a fair deal."

The Future of Food Delivery

As the food delivery market continues to grow, it's clear that the current model is unsustainable. Apps like Grubhub and Uber Eats need to adapt to the changing landscape and find a way to balance the needs of restaurants, drivers, and customers. "It's time for a change," says Gliatta. "We need to find a way to make this work for everyone involved. If we don't, it's going to be a disaster for the industry as a whole."

The Call to Action

So, what can you do to help? Here are a few suggestions:

• Support local restaurants by ordering directly from them or using apps that don't take a commission fee.

• Demand transparency from food delivery apps about their fees and commission rates.

• Consider using alternative delivery methods, such as bike delivery or peer-to-peer delivery apps.

• Join the conversation on social media using the hashtag #FairFoodDelivery.

By taking these steps, we can help create a more sustainable and equitable food delivery market that benefits everyone involved. The future of food delivery is uncertain, but one thing is clear: it's time for a change.